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AI and the Workplace in 2025: Can Technology Replace the Office?

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For years, predictions of the “death of the office” have cycled through business pages with varying levels of credibility.

According to GoTo’s latest Pulse of Work in 2025 survey, over half of employees – 51 percent – believe AI will eventually make physical offices obsolete.

It’s a striking headline, but one that deserves interrogation.

Can survey sentiment be translated into actionable strategy for CIOs and CFOs deciding how to allocate millions in IT budgets and real estate costs? Or is this another case of workplace wishful thinking?

The report, conducted with Workplace Intelligence, canvassed 2,500 employees and IT leaders in ten markets (USA, Canada, the UK, Ireland, Germany, Austria, Switzerland, India, Mexico and Brazil).

That breadth gives the research some heft, but it also raises questions: do respondents in high-density cities like Mumbai or São Paulo view office necessity differently than workers in suburban North America?

And how might cultural or regulatory differences influence attitudes toward remote work and AI adoption?

Reading Between the Numbers

The data suggests a strong belief in AI’s positive impact:

  • 62 percent of employees say they’d prefer AI-enhanced remote work to office life.
  • 71 percent cite work-life balance improvements.
  • 66 percent believe AI makes them equally productive anywhere.
  • 65 percent say AI helps them serve customers better remotely.

These numbers are compelling, but sentiment doesn’t always equal outcomes.

Productivity gains attributed to AI are difficult to measure independently, and much depends on the definition of “AI.”

Does an automated helpdesk count? A predictive scheduling assistant? A generative AI tool summarising meetings? The term itself risks becoming a catch-all for digitalisation.

There’s also a potential sample bias: respondents are evenly split between remote, hybrid, and on-site workers, but those with positive AI experiences may be more inclined to participate enthusiastically.

Enterprises should therefore view the statistics as directional, not definitive.

The IT Leader/Employee Disconnect

One of the most telling (and troubling) findings in the report is the gulf between leaders and staff – 91 percent of IT leaders believe their organisation uses AI effectively to support remote teams, but only 53 percent of employees agree.

This gap suggests that while IT leaders are satisfied with deployments, end-users find them less impactful.

That has implications for ROI, as an underused tool represents sunk cost.

This disconnect also highlights a risk often glossed over in surveys: the change management challenge.

Buying AI tools is the easy part, but embedding them into everyday workflows is far harder.

For CIOs, this should be a red flag. If employees are unconvinced, then AI becomes just another layer of technology – tolerated rather than embraced.

Generational Enthusiasm – Or Just Adaptation?

The survey reports that adoption spans all ages: 90 percent of Gen Z, 84 percent of Millennials, 71 percent of Gen X, and 74 percent of Boomers cite productivity gains from AI.

While impressive, one might question whether these figures reflect genuine efficiency or simple adaptation to new tools.

Older workers may not be “embracing” AI as much as learning to cope with it.

Without more granular data – e.g., are they saving measurable hours, or just tolerating a chatbot instead of a helpdesk call? – the headline percentages could risk overstating the universality of AI’s benefits.

The Economics of Perks vs. Platforms

Perhaps the most actionable finding is that 61 percent of employees want investment in AI over office amenities.

For CFOs weighing where to allocate budgets, this could justify diverting funds from underutilised real estate or perks into digital infrastructure.

Yet here too, nuance is needed as preferences don’t necessarily translate into performance.

If AI spend is seen as a trade-off against office culture or collaboration, could organisations risk long-term erosion of engagement? And how should CFOs model the return on investment from AI tools that may reduce support costs but increase licensing fees?

The Real Questions for Buyers

For CIOs, CFOs, and HR leaders, the survey may prove informative and reveals where employee sentiment lies, but not necessarily where the business case stands.

Decision-makers will need to interrogate:

  • ROI Validity: What measurable productivity gains does AI actually deliver compared to cost outlay?
  • Security & Compliance: Are AI tools being evaluated for GDPR, HIPAA, or sector-specific risks?
  • Scalability: Can solutions scale across regions with different regulatory and cultural contexts?
  • Change Management: How can enterprises close the perception gap between IT leaders and employees?
  • Hybrid Trade-Offs: Will heavy AI investment reduce the role of offices, or will offices remain critical for creativity, onboarding, and sensitive discussions?

Before making multi-million dollar decisions, leaders must see beyond the buzz and ask if their AI strategy actually aligns with broader business goals and long-term organisational culture.



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Talk on ethical challenges of AI

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The Dr. Pritam Singh Foundation, in collaboration with IILM University, hosted a discussion on “Human at Core: AI, Ethics, and the Future” at Tech Mahindra, Cyberabad, on Saturday, in memory of the late Dr. Pritam Singh, a noted academic.

After launching the discussion, Assembly Speaker Gaddam Prasad Kumar highlighted the ethical challenges of Artificial Intelligence (AI), warning against algorithmic bias, threats to data privacy, and job displacement. He called for large-scale reskilling and emphasised that India must shape AI technologies to reflect its values of fairness, transparency, and inclusivity. He urged corporate leaders to establish strong governance frameworks, audit algorithms for bias, and ensure responsible adoption of AI.

Delivering the keynote address, Chairman of Administrative Staff College of India (ASCI) K. Padmanabhaiah stressed India’s opportunity to leverage AI for inclusive growth across healthcare, agriculture, education, and fintech — while ensuring technology remains human-centric and trustworthy.

One of the founders of the Dr. Pritam Singh Foundation P. Dwarakanath, Director at IILM University Chaturvedi, Director at the Institute for Development & Research in Banking Technology (IDRBT) Deepak Kumar, Managing Director of Signode Asia Pacific Gaurav Maheshwari, Pritam Singh’s son Vipul Singh, and author and economist Vikas Singh spoke.



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Walmart’s latest AI innovations represent a shift for big retail

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With fears about the strength of consumer spending running high due to tariffs, inflation and other economic pressures, retailers are working hard to sustain revenue growth. While some retailers are leaning into worker-led personalized experiences for shoppers, other retailers are focusing more on leveraging artificial intelligence to optimize the shopping experience.

Walmart is one of those retailers, adding new “super agents” that aims to save time and effort for both workers and shoppers. At its recent Retail Rewired innovation event, Walmart highlighted the launch of four “super agents,” which include Marty for sellers and suppliers, Sparky for shoppers, the Associate Agent and the Developer Agent.

With agents performing capabilities in the realm of payroll, paid time off, merchandising and finding the right products for any event, Walmart is consolidating its powerful, time-saving tools for the sake of a streamlined experience for multiple points of interaction with the company.

“Having a plethora of different agents can very quickly become confusing,” Suresh Kumar, chief technology officer for Walmart Global, said at the event.

The Associate Agent, for example, is “a single point of entry where any associate can find access to all of the agents we’ve built on the back end,” explained David Glick, senior vice president for Enterprise Business Solutions at Walmart. “As you speak to it more, as you work with it more, it’ll know more about you.”

The evolution comes alongside a broader shift for retail, an industry actively seeking to counteract cost concerns from consumers and the government, and Walmart isn’t alone in its push toward all things AI. Amazon’s Prime Day event over four days in July saw generative AI use jump 3,300% year over year, according to TechCrunch. Meanwhile, Google Cloud AI partnered with body care retailer Lush to visually identify projects without packaging, ultimately reducing the expense of training new hires.

Making digital twins of Walmart stores

Walmart is also all-in on physical and spatial AI, specifically digital twins (a virtual copy of any physical object or space — in Walmart’s case, their stores and clubs). Using digital twin technology powered by spatial AI, Walmart can “detect, diagnose and remediate issues up to two weeks in advance,” Brandon Ballard, group director for real estate at Walmart US, said at Retail Rewired. Using this technology comes with big savings, according to Ballard. “Last year, we cut all of our emergency alerts by 30% and we reduced our maintenance spend in refrigeration by 19% across Walmart US,” he added.

“At its core, retail is a physical business,” said Alex de Vigan, CEO and founder of Nfinite, which generates large-scale visual data for training spatial and physical AI models. “We’ve seen retailers use digital twins to reduce setup time for new promotions, reallocate labor more efficiently, and improve robotic picking accuracy, small gains that add up quickly when margins are under stress,” he said.

While the impact of digital twins may not be outwardly visible to consumers in the same way, say, Walmart’s Sparky agent is, its effects will be real. “Better stock accuracy, faster site updates and fewer order issues mean a smoother retail experience, even in a tighter economy,” said de Vigan.

Another innovation on the back end is Walmart’s use of machine learning to better understand how long it will take to get a delivery order on a customer’s doorsteps, effectively managing expectations while increasing efficiency.

As for what consumers can see, Sparky is already helping shoppers generate baskets built on an intuitive understanding of their needs. Walmart is currently working on enabling the agent to take action on reordering products, ultimately reducing the mental load that shoppers deal with.

For retailers, AI is one way to combat any slowdown in consumer spending, but we’ve yet to see how a fully integrated AI shopping experience — both in person and online — will shape our relationship with retail moving forward.



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What is AI Worth to the Economy?

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To help you understand what is going on in new technologies and the economy, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You’ll get all the latest news first by subscribing, but we publish many (but not all) of our forecasts a few days afterward online. Here’s the latest…

Amid the hype over AI, a practical question: When will the technology boost the economy the way its developers and promoters are promising? Is artificial intelligence going to unleash a surge in worker productivity, as epochal new tech has done in the past? Or is investor enthusiasm for it overdone?



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